M ONTHLY BUSINESS REVIEW C overing C onditions in the S ixth Federal Reserve D istrict. FEDERAL RESERVE BANK OF ATLANTA OSOAR NEWTON, WARD ALBERTSON, Chairman and Federal Reserve Agent Assistant Federal Reserve Agent VOL. 10 ATLANTA, GA., JANUARY 31, 1925 No. 1 BUSINESS;CONDITIONS IN THE UNITED STATES. By the Federal Reserve Board. Production and employment in December continued the since April, 1923. Prices of all groups of commodities were increase which began in the autum n and wholesale prices higher, the principal increases being in farm products and advanced further to the highest level for the year. Rail­ foods. In the first half of January prices of grains, wool, road shipments of goods continued in large volume and coal, and metals increased further, while sugar, dairy trade, both at wholesale and retail, was larger than a year products, silks, coke, and rubber declined. ag o . Bank Credit f At the Federal Reserve Banks the rapid Production The index of production in basic indus­ return flow of currency after the holiday tries advanced about 10 per cent in Decem­ trade resulted, during the four weeks ending January 21, ber to a point 25 per cent higher than last summer but was in a reduction of earning assets about equal to that for the still below the level of the opening months of 1924. Prac­ same season a year earlier. The net outflow of currency tically all of the 22 industries included in the index shared from the reserve banks during the m onth preceding Christ­ in the advance and the increases were particularly large mas am ounted to more than $200,000,000, and the return flow in iron and steel, cotton manufacturing, coal mining, and after the Christmas peak, reflected both in the increase meat packing. Among the industries not represented in in reserves and in the decline of Federal Reserve note cir­ the index the output of automobiles declined in Decem­ culation, was in excess of $300,000,000. Fluctuations in the ber and was the smallest for any month in more than two earning assets of the reserve banks during the past two years. Increased industrial activity was accompanied months have reflected chiefly these seasonal changes in by an advance of about 2 per cent in factory employment, the demand for currency. The decline in Discounts with larger increases in the metal and textile industries, brought their total on January 21 to a smaller volume than and by a growth of nearly 5 per cent in total factory pay­ at any time in 1924, and acceptances also showed a seasonal rolls. Volume of building, as measured by contracts award­ decrease. Holdings of United States securities, which ed, was less in December than in November, but continued have declined for more than two months, were about $175,- unusually large for the season of the year. 000,000 below the level of last autum n and in about the same amount as at the middle of 1924. Net exports of gold, which gave rise to a demand for reserve bank credit, amount­ Trade Distribution of goods was greater in De­ ed to $30,000,000 in December and were in larger volume cember than in the same month of 1923, during the first three weeks in January. as indicated by larger railroad shipments and an increase in the volume of wholesale and retail trade. Christmas The growth of demand deposits at member banks in leading trade at department stores was greater than in the pre­ cities during the three weeks ending in the middle of Jan­ vious year, and sales by mail order houses and chain stores uary, which has been greater than the increase in their were the largest on record. Wholesale trade was season­ total loans and investments, has reflected the return of ally less than in November but in practically all lines was currency from circulation. In the same period there was larger than a year ago. Marketing of agricultural prod­ some increase in commercial loans and a continued growth ucts was greater than for the corresponding month of any in loans secured bylstocks and bonds. Holdings of invest­ recent year. ment securities have decreased somewhat since the middle of November, particularly at the banks in New York City. Prices A further advance of more than 2 per cent Firmer conditions in the money market in December in the Bureau of Labor Statistics index and the first few days in January were followed later in the of wholesale prices carried the average in December 8 per month by declines in rates on commercial paper to 3| per cent above the low point of June and to the highest level rj------------------ •- 200 ‘ ** * i * * ' * •* ** ««* * •• 150 150 » • • too ♦ J 1 Vw 7 • ■ * 100 100 5 0 50 50 P R O D U C TIO N IN B A S IC INC(USTRIES WHOLES/kl-E PRICES 1 ... 1 1922 1923 1 9 2 * 1925 19 22 1323 192* 1925 In d of 22 b asic c 3 n n d iitiesladjusted for seasonal variations Index of United States Bureau of Labor Statistics. (1913=100. Digitized for FRASER (1919 =*103.) Lat93t figure, December, U17. base adopted by bureau.) Latest figure, December, ;157.0, http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 2 THE M ONTHLY BUSINESS REVIEW X322 1923 1924 1925 In d e x of sales of 333 stores in 117 cities (1919=100.) L ate st fig ­ Weekly figures for 12 Federal reserve banks. Latest figures for ures— December. Adjusted 129, Unadjusted 207. January 21. SIXTH DISTRICT SUMMARY. and were 46 per cent greater than in December 1923. Ac­ tivity in the lumber industry was interrupted in December Business statistics gathered for the month of December by the holiday season, and by adverse weather, but many show that improvement has taken place in general busi­ mills resumed promptly after Christmas and some are on ness conditions in the Sixth Federal Reserve District. The double shifts. Cotton mills manufacturing cloth and money return from the season’s agricultural production of yarn reported figures for December showing increases over the six states of the Sixth District is estimated by the De­ the same month a year ago. Prevailing prices for turpen­ partm ent of Agriculture at nearly a hundred and twenty tine are not quite up to those received in December 1923, million dollars more than in 1923, or an increase of eleven but rosin prices are higher than at that time. p e r c e n t. Improvement in retail trade is indicated by the fact that RETAIL TRADE. department store sales for the district were higher in De­ cember than in any other m onth during the past five years Retail trade in December, reflected in reports to the except in December 1920. Wholesale trade, which usually Federal Reserve Bank by 46 department stores located falls off very materially in December, showed a smaller throughout the Sixth District, was more than five per decrease than usual compared with the preceding months, cent greater than in December 1923. December sales were, and was considerably higher than in December a year ago. of course, substantially greater than those in November, While the loans of reporting member banks were at a high at all reporting cities. Increased business over December point at the close of the year, demand deposits were also 1923 was reported from all cities except Nashville, Jackson higher than on any reporting date in two years and sav­ and Savannah, and the declines at these points were small. ings deposits continue to show increases over a year ago. The volume of sales during the last half of 1924 in the dis­ Borrowing from the Federal Reserve Bank showed further trict was only two per cent lower than in the same period declines during the month. Debits to individual accounts in 1923. The index number for December stands at 177.9, at twenty-four cities in the district were about eighteen and is higher than for any m onth since 1920, and less than million dollars greater during the week ended January 14, one point below the high point reached in December of than in the corresponding week last year. The volume of that year. Stocks of merchandise declined 22 per cent building in prospect continues at a high level. Permits compared with November, and were nearly 7 per cent lower issued at tw enty cities during December totaled $10,703,651, than at the end of December 1923. CONDITION OF RETAIL TRADE—DECEMBER) 1924 • • • / «••• «** \ Sl&q F^cfofal Reserve D istrict r. • ••* • * , r i* • • .* * Increase or Decteue •* • 1 (3) 1 (4) ••\ • * •]!> ..... .... <2e:____ • . Com parison of net sales w ith ».Stggk$ at to d of ftwrfth • # Percentage of average stocks Percentage of outstanding • • period la#t ^ ej£r» • • \ • • <c«mpared with • / ,* at end of each month from orders at end of December to • • £> • • • ► # • «. • • V «l July to date (6 months) to total purchases during • •July • • b % ;.H •. average monthly sales calendar year 1923 r • ♦ Dec. to Dec. N ov. •* • . • over same period > •• »• Dec. 1923 _ . .. Atlanta (5)............... ........ b : A-V3.4: : 359.1 4.1 B irm in g h a m (5)............. : : — «5.i 355.0 4.2 Chattanooga (6)............... +•2.1 •• • : — 25.5 420.1 Jackson (3)______________ — 1.4 — 3.5 + 1.0 — 19.7 507.3 Nashville (5)_______ ______ — 1.3 -10 .2 — 13.3 — 16.8 417.8 i. 2 New Orleans (5)....... ........ + 6.0 — 5.4 — 0.5 -20 .7 428.2 8.6 S a v a n n a h (3 )-.-__________ — 2.9 — 5.9 — 10.1 — 16.9 499.0 3.8 O ther C ities (14)..............